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Digital customer engagement is more important than ever. Indeed, brands that invest in it will not only improve their marketing success but their overall business performance.
Our research recently backed this up, revealing that 92 per cent of organisations that invested in digital customer engagement saw revenues grow by an average of 90 per cent. Furthermore, six out of ten companies (60 per cent) reported that investment in digital customer engagement has improved their ability to meet changing customer needs.
To maximise their investments and drive ROI, brands are now turning towards first-party data, or data collected directly from consumers with their consent. Here are five reasons why this strategy is likely to deliver strong results for brands over the coming months and years.
1. First-party data is more accurate
Because first-party data comes directly from consumers, it is more precise and better reflects current demand. This, in turn, boosts a company’s ability to create more meaningful and relevant personalisation. Ultimately, brands that use their own first-party data – with their customers’ consent – will be able to see a clearer picture of a customer’s journey across their website and other touchpoints.
2. Stronger personalisation will lead to greater loyalty
Today’s consumers are savvier than ever, and their demand for real-time, personalised experiences is growing by the day. In fact, the majority (86 per cent) of consumers say that personalised experiences increase their loyalty to brands, and people spend on average 21 per cent more on brands that personalise. With a great deal of uncertainty in the macroeconomic climate, businesses cannot afford to underestimate the importance of first-party data to engage consumers with tailored experiences, which will lead to stronger long-term relationships with their audiences.
3. It will address consumer trust issues
Data and mistrust can often seem to go hand in hand. However, there is potential to escape these murky, untrustworthy waters through the use of first-party data. By consensually collecting information directly from their customers and being more transparent about how they plan to use and store this data, brands can begin to rebuild and grow trust.
4. Consumers are demanding a faster transition to a cookieless future
Nearly a third (31 per cent) of consumers always or often reject cookies on websites, while over two thirds (67 per cent) would prefer brands use only first-party data to personalise their experiences. Consumers increasingly want to share data on their terms and aren’t convinced of the value to them of being tracked around the web. Companies which strive to meet this consumer expectation will therefore likely improve engagement and time spent on their platforms.
5. The death of third-party cookies is looming
Third-party cookies have long been known to track internet browsing sessions from website to website. However, in good news for consumers, Apple declared the end of IDFA (the company’s equivalent to in-app cookies) more than two years ago, and Google has also pledged to replace the use of third-party cookies in its Chrome browser by 2024. Brands that prepare now will have a first-mover advantage and achieve the biggest marketing ROI.
With first-party data also presenting clear business growth opportunities, the end of third-party cookies shouldn’t be the only reason for brands to make a change. By making this transition, companies will be able to better personalise engagement with customers and generate higher revenues, loyalty and ROI.
Ultimately, the brands that have the best data and know how to use it will best understand changing customer needs. They can then provide the experiences people expect and crave – and deliver robust business results.
To find out more, please visit twilio.com.
By Sam Richardson, Customer Engagement Consultant, Twilio
